-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OUGdek5j3LjPatRgKwtlK3EhFUNJTrTt5uGa/jN9SL8U5cau0FnwX7iFfGjIZJWO T4ex8DpOM7PuHZyg2C3rGg== 0000815910-05-000044.txt : 20050726 0000815910-05-000044.hdr.sgml : 20050726 20050726163334 ACCESSION NUMBER: 0000815910-05-000044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050726 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050726 DATE AS OF CHANGE: 20050726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METROLOGIC INSTRUMENTS INC CENTRAL INDEX KEY: 0000815910 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 221866172 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24712 FILM NUMBER: 05974582 BUSINESS ADDRESS: STREET 1: COLES ROAD AT RTE 42 CITY: BLACKWOOD STATE: NJ ZIP: 08012 BUSINESS PHONE: 609-228-8100 MAIL ADDRESS: STREET 1: COLES ROAD ROUTE 42 CITY: BLACKWOOD STATE: NJ ZIP: 08012 8-K 1 q205earn.txt FORM 8-K 2ND QUARTER PRESS RELEASE SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report - July 26, 2005 (Date of earliest event reported) METROLOGIC INSTRUMENTS, INC. (Exact name of Registrant as specified in its charter) New Jersey 0-24172 22-1866172 (State of incorporation) (Commission file number) (IRS employer identification number) 90 Coles Road, Blackwood, New Jersey, 08012 (Address of principal executive offices, zip code) Area Code (856) 228-8100 (Telephone number) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): __ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) __ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) __ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) __ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operation and Financial Condition Metrologic Instruments, Inc. (the "Company") is furnishing herewith as Exhibit 99.1 its Press Release dated July 26, 2005 announcing the Company's earnings for the second quarter ended June 30, 2005. Item 9.01 Financial Statements and Exhibits. (c) Exhibits 99.1 Metrologic Instruments, Inc. press release dated July 26, 2005 announcing the Company's earnings for the second quarter ended June 30, 2005 SIGNATURES Pursuant to requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: July 26, 2005 Metrologic Instruments, Inc. By: /s/ Kevin J. Bratton Kevin J. Bratton Chief Financial Officer METROLOGIC INSTRUMENTS, INC. CURRENT REPORT ON FORM 8-K EXHIBIT INDEX Exhibit No. Page 99.1 Metrologic Instruments, Inc. press release dated 4 July 26, 2005 announcing the Company's earnings for the second quarter ended June 30, 2005. EXHIBIT 99.1 Corporate Headquarters Metrologic Instruments, Inc. 90 Coles Road Blackwood, NJ 08012-4638 [COMPANY LOGO] Tel 856.228.8100 Fax 856.228-0653 (finance/legal) www.metrologic.com Metrologic Announces Financial Results for Second Quarter 2005 Confirms Guidance for 2005 Teleconference 8:30 a.m. Wednesday, July 27, 2005 Blackwood, New Jersey - July 26, 2005 -- Metrologic Instruments, Inc. (NASDAQ-NMS:MTLG) today announced financial results for the quarter and six months ended June 30, 2005. o Sales for the quarter ended June 30, 2005 increased by 18.6% to $48.6 million as compared with sales of $41.0 million for the same period last year. o Gross Margin for the second quarter was 44.4% versus 44.5% in the second quarter 2004. o Net Income for the second quarter increased by 11.3% to $4.7 million, or $0.20 earnings per diluted share, compared with net income of $4.2 million, or $0.18 earnings per diluted share, for the same period last year. o The Company's Data Capture and Collection segment continued to gain market share as revenues in this segment rose 22.0% from a year ago. Gross Margin was impacted by downward pressure from the increased contribution of the growing Optical Systems business as well as the overall shift in business mix due to the continued penetration of Tier 1 accounts in the Company's Data Capture and Collection business. During the second quarter of 2005, this was offset by favorable product mix in the Data Capture and Collection business but the Company expects that this pressure on margins will continue and that further shifts in the product mix may occur again in the coming quarters. Selling, general and administrative (SG&A) expenses were up 33.4% over the comparable period in 2004 primarily due to salaries and wages related to increased headcount; legal expense due to ongoing litigation; and costs associated with the reduction in force that occurred in June. The Company has addressed the increased SG&A expense as part of the overall cost reduction effort announced on June 16, 2005 when we also issued revised guidance for the remainder of 2005. Metrologic's Chief Executive Officer and President, Benny Noens, stated, "Our results for the second quarter of 2005 are in line with historical performance and our revised outlook for the year. Despite challenging industry conditions, we achieved 22.0% revenue growth in our Data Capture and Collection segment and 18.6% overall revenue growth as compared to last year. We continue to see challenging economic conditions around the world, particularly in Europe; however, business is still being won, just at a slower pace than we had originally anticipated. We are comfortable that the revised targets we have set for ourselves remain achievable, particularly as it relates to our second half performance expectations." Significant Progress Achieved Along Numerous Strategic Initiatives During the quarter the Company achieved several significant milestones that have been identified as key strategic initiatives in establishing new platforms for sustaining growth. o In the Tier 1 market, the Company won a major implementation, consisting of over 10,000 VoyagerCG(R) handheld scanners, with one of Europe's largest retailers. o The Company successfully penetrated the `In-Counter' bi-optic scanner market with a significant Stratos(R) implementation of 2,000 units with Tesco Stores Ltd. o Received an initial order from a North American Tier 1 retailer for the roll-out of the VoyagerBT(R) model to all stores in one of their major lines of business. o Over 20,000 Focus(TM) hand-held area imagers ordered by a leading North American retailer. Shipments are expected to be completed in the third quarter. o The Industrial Automation/Optical Systems segment continued to perform on its strategic plan led by the Optical Systems business with a 13.8% increase in revenue over the second quarter of 2004. Overall segment results were tempered by weakness in our Industrial Automation business. Mr. Noens continued, "We believe our success in penetrating the Tier 1 market and effecting a major Stratos(R) implementation are significant milestones in our long-term strategy. We are building on our successful formula and continue to execute on our plan. This quarter we opened new Asia/Pacific offices in Taiwan and Korea. We have expanded and improved our product portfolio with our new 5-sided bi-optic scanner for the EMEA and Asia/Pacific markets, the StratosS(R). The newly formed Americas Data Capture and Collection sales organization, who delivered revenue growth in excess of 25%, contributed substantially to the 19.2% revenue growth in The Americas sales region as compared to the second quarter of 2004. This validates our decision to separate the Organization from our Corporate Headquarters and provides them with autonomy to focus on growing the business." First Half 2005 Results Sales for the six months ended June 30, 2005 increased 18.3% to $95.5 million, compared with $80.7 million for the same period in 2004. Net Income for the six months ended June 30, 2005 decreased 7.9% to $8.6 million, or $0.37 per diluted share, compared with $9.3 million, or $0.40 per diluted share, for the first six months of 2004. 2005 Full Year Outlook Confirmed Metrologic revised its financial forecast for the full year of 2005 in its press release dated June 16, 2005. That outlook is confirmed and restated in this release. Net sales are expected within a range of approximately $195.0 million to $205.0 million. Net income is expected to be in the range of $18.5 million to $19.7 million, or $0.80 to $0.85 earnings per diluted share. The earnings estimate for 2005 assumes that the value of the euro averages for the year at $1.20 to $1.25 U.S. dollars to the euro and the tax rate to be approximately 36%. The Company expects gross margins to remain in the range of 43% to 45% for the full year 2005. Conference Call Information The Company will host a conference call for investors on Wednesday, July 27, 2005 at 8:30 AM ET. The dial in numbers for the teleconference are: (800) 946-0719 (Domestic/Canada) or (719) 457-2645 (International). Those interested in participating in the conference call should dial in at least 10 minutes prior to commencement of the call. The audio for the conference call will also be available as an audio web cast that can be accessed through the Metrologic web site at www.metrologic.com by clicking on the banner at the bottom of our home page and following the instructions. Also available through our web site will be a graphical presentation that will be referred to throughout the conference call. The graphical presentation will be available for download and printing 30 minutes before the start of the conference call. About Metrologic Metrologic Instruments, Inc. ("Metrologic" or the "Company") designs, manufactures and markets bar code scanning and high-speed automated data capture systems solutions using laser, holographic and vision-based technologies. Metrologic offers expertise in 1D and 2D bar code reading, portable data collection, optical character recognition, image lift, and parcel dimensioning and singulation detection for customers in retail, commercial, manufacturing, transportation and logistics, and postal and parcel delivery industries. In addition to its extensive line of bar code scanning and vision system equipment, the Company also provides a variety of highly sophisticated optical systems used by the commercial, government, and scientific communities. Metrologic products are sold in more than 110 countries worldwide through Metrologic's sales, service and distribution offices located in The Americas, EMEA and Asia/Pacific. For more information please call 1-856-228-8100 or visit www.metrologic.com. Forward Looking Statements Forward-looking statements contained in this release are highly dependent upon a variety of important factors which could cause actual results to differ materially from those reflected in such forward looking statements. Specifically, the factors that could cause actual results to differ from expectations include: the timing, introduction and market acceptance of Metrologic's new products; foreign currency fluctuations with the US dollar; pricing pressures; competitive factors; sales cycles of Metrologic's products; Metrologic's ability to control manufacturing and operating costs which affect future profitability; technological changes in the data capture industry, including the adoption of vision-based technologies and RFID; availability of patent protection for Metrologic's vision-based technologies, and other products; the resolution of litigation; general economic conditions; and the potential impact of terrorism, international hostilities and natural disasters. When used in this release and documents referenced, the words "believes", "expects", "may", "should", "seeks", or "anticipates", and similar expressions as they relate to Metrologic or its management are intended to identify such forward-looking statements. For additional factors, please see Metrologic's reports filed with the Securities and Exchange Commission. For more information contact: Ann Anthony, Investor Relations 856.228.8100 Email: a.anthony@metrologic.com Metrologic Instruments, Inc. Condensed Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 ---- ---- ---- ---- (Unaudited) Sales $ 48,604 $ 40,990 $ 95,455 $ 80,690 Cost of sales 27,044 22,749 53,777 42,798 -------------------- -------------------- Gross profit 21,560 18,241 41,678 37,892 Selling, general and administrative expenses 12,139 9,099 23,534 18,473 Research and development expenses 2,218 2,124 4,170 3,847 -------------------- -------------------- Operating income 7,203 7,018 13,974 15,572 Net interest income 112 24 134 35 Other expense (45) (299) (742) (625) -------------------- ------------------- Income before income tax expense 7,270 6,743 13,366 14,982 Income tax expense 2,617 2,562 4,812 5,693 -------------------- ------------------- Net income $ 4,653 $ 4,181 $ 8,554 $ 9,289 ==================== =================== Earnings per share: Basic $ 0.21 $ 0.19 $ 0.39 $ 0.44 Diluted $ 0.20 $ 0.18 $ 0.37 $ 0.40 Weighted average number of common shares outstanding Basic 22,136 21,504 22,022 21,327 Diluted 23,076 22,954 23,100 22,961 Metrologic Instruments, Inc. Condensed Consolidated Balance Sheets (all amounts in thousands) June 30, December 31, 2005 2004 ---- ---- (Unaudited) Cash and cash equivalents $ 73,257 $ 64,715 Accounts receivable, net 38,125 35,153 Inventories, net 21,869 23,865 Other current assets 4,248 4,369 --------- -------- Total Current Assets 137,499 128,102 Property, plant and equipment, net 19,685 19,468 Goodwill and other intangibles, net 42,190 43,462 Other assets 1,553 1,495 -------- -------- Total assets $200,927 $192,527 ======== ======== Accounts payable and accrued expenses $ 26,385 $ 27,012 Current portion of debt 19,992 16,265 Deferred contract revenue 566 1,507 -------- --------- Total current liabilities 46,943 44,784 Debt 18 2,015 Other liabilities 7,345 7,712 Total shareholders' equity 146,621 138,016 -------- -------- Total liabilities and shareholders' equity $200,927 $192,527 ======== ======== Supplemental Sales Data Three Months Ended June 30, % % 2005 2004 total growth ---- ---- ----- ------ By Geography(1) The Americas $ 23,149 $ 19,424 47.6% 19.2% EMEA 19,387 16,385 39.9% 18.3% Asia/Pacific 6,068 5,181 12.5% 17.1% ---------------------------- $ 48,604 $ 40,990 100% 18.6% By Business Segment(2) Data Capture and Collection $ 39,128 $ 32,084 80.5% 22.0% Industrial Automation/Optical Systems Industrial Automation 3,461 3,620 7.1% -4.4% Optical Systems 6,015 5,286 12.4% 13.8% ----------------------------- $ 48,604 $ 40,990 100.0% 18.6% Six Months Ended June 30, % % 2005 2004 total growth ---- ---- ----- ------ By Geography(1) The Americas $ 45,766 $ 38,724 47.9% 18.2% EMEA 38,253 33,345 40.1% 14.7% Asia/Pacific 11,436 8,621 12.0% 32.7% ---------------------------- $ 95,455 $ 80,690 100% 18.3% By Business Segment(2) Data Capture and Collection $ 75,656 $ 63,189 79.3% 19.7% Industrial Automation/Optical Systems Industrial Automation 8,015 8,829 8.4% -9.2% Optical Systems 11,784 8,672 12.3% 35.9% ----------------------------- $ 95,455 $ 80,690 100.0% 18.3% (1) The Company has changed its geographic categories from North America, previously comprised of POS/OEM and AOA, EMEA, Asia/ROW and South America, to The Americas, EMEA and Asia/Pacific which is more consistent with how the Company looks at its business. (2) As previously noted in our Annual Report on Form 10-K filed with the SEC on March 15, 2005, the Company has changed its business segment titles from "POS/OEM" to "Data Capture and Collection", and from "Industrial/Optical Systems" to "Industrial Automation/Optical Systems". -----END PRIVACY-ENHANCED MESSAGE-----